http://www.youtube.com/watch?v=jNXoaIRL8CI GDP, the most popular way economists attempt to quantify economic activity, is a recent invention and one that won’t stand the challenge presented by measuring output when services are dominant as they are in the UK. The first attempt…
Tag: economics
Scotland’s No vote is neither good nor bad for value-creation
Scotland’s decision to reject independence could leave the country in the worst of all possible worlds in terms of developing policies to promote value creation in an economy where services are dominant. The consensus among conventional economists was that independence…
Think you know the value of your home? Think again
The prices of houses in London have risen by 26 per cent in the last 12 months, according to new figures published by Nationwide, Britain’s biggest building society. I’m a London homeowner, so this is a story of more than…
The money test that economics fails
Monetary theory is a central element of economics. Its significance has risen since the monetarist counter-revolution led by Milton Friedman. And yet, the theory is profoundly unsatisfactory as even a cursory reading of basic text books will suggest. Conventional monetary fails…
Storm builds over use of data by Piketty
The controversy about Thomas Piketty’s use of data in Capital in the 21st Century is producing more heat than light. It started on 23 May when the FT reported that figures used by Piketty had been manipulated and didn’t produce…
Top professor says you can’t take ideology out of economics
Any attempt to develop ideology-free economics will fail and pragmatism won’t help the profession, according to professor Allen J Scott of the University of California. “…all forms of economic knowledge, from complex formal models to simple empirical descriptions, are always…
If price doesn’t work in service economies, you need a robust theory of value
On Wednesay, a comment by Professor John Kay in the FT about the frustration among students of economics called for the profession to address key issues rather than technical models. But what is the key issue economics should address? Followers…
Welcome to Economics2030…
… a vital source of ideas and news about economics and economic theory that seeks to re-define the discipline to take into account the rise of intangibles generally and intangible capital in particular in advanced economies. This site contains a rich…